The Democratic governor pushed for the change, known as the "Local Control Funding Formula." It will send $2.1 billion more to school districts that have high numbers of students from lower-income families, who have limited English proficiency or are foster children.

The formula also gives school districts more control over state aid by eliminating earmarks for state-mandated programs. Democratic lawmakers say districts will be responsible for tracking students' success, but Republicans say the spending plan lacks accountability.

Brown also signed AB94, which provides college grants to middle income families.